Property Valuation
The principle of balance in Utah real estate valuation states that:
AAll properties in a neighborhood must have equal value
BMaximum value is achieved when the various elements (land, labor, capital, management) are in proper proportion✓ Correct
CThe land and building values must always be equal
DSupply and demand are always in equilibrium
Explanation
The principle of balance (or proportionality) holds that maximum value is achieved when all factors of production are in balance. Over-improvement or under-improvement reduces value relative to the balanced ideal.
Related Utah Property Valuation Questions
- When an appraiser uses paired sales analysis in the sales comparison approach, the purpose is to:
- Utah's Great Salt Lake level changes affect nearby property values through:
- Regression and progression are principles related to:
- In a Utah seller's market, where demand exceeds supply, property values typically:
- The capitalization rate (cap rate) is calculated as:
- The capitalization rate (cap rate) in real estate appraisal represents:
- When appraising a ski resort property near Park City, Utah, the appraiser should give the most weight to:
- Utah's county assessors are required to physically inspect each property at least every:
Practice More Utah Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Utah Quiz →